Stock trading using Overshoot Sentinel Adaptive Edition
In the stock market, sharp overbought or oversold movements can occur—an “overshoot.” If you can capture this appropriately, you can accurately determine the initial rebound and the timing for entries and exits.
Overshoot Sentinel – Adaptive Edition is an indicator that adapts its thresholds according to market conditions, enabling a more intuitive and practical way to capture overshoots compared to traditional oscillators.
Short-term Reversal Strategy
When RSI spikes up and enters the red zone, it suggests short-term overbought conditions. Use the zone exit timing as a reference for a sell entry.
Confirmation of Pullbacks and Retracements
Movements from the green zone (oversold) back to the blue line are effective for confirming pullback buying timing.
Risk Management in Volatile Markets
When the background zone is shown more densely, it indicates extreme market conditions, providing material for adjusting position sizes and profit-taking decisions.
This time,we would like to present a reference example of a pullback buy.
We have picked several charts from above-average volume stocks.
NTT (9432) 1-hour chart
The overshoot state of the green line, indicating a strong decline, had continued for a long time. This is an example of buying the pullback when that green line turned blue.
It remains to be seen whether a buying opportunity will come again soon.
SoftBank (9434) 1-hour chart
This is another example where a long green line was found and traded. The second pullback buying point in the middle did not continue to rise afterwards, but considering it on a day-trading basis, selling the next day would have yielded a satisfactory profit.
Mitsubishi UFJ Financial Group (8306) 1-hour chart
This stock does not move in wide swings, but even so, pullbacks could be picked up on a day-trading basis.
Tokyo Electric Power Company Holdings (9501) 1-hour chart
Recent pullbacks do not look very favorable, but pullbacks prior to that were relatively clear.
Overshoot Sentinel – Adaptive Edition—we introduced technical trading decision materials using it.
Individual stocks are influenced by their fundamentals as well, so you should choose stocks with solid underlying potential, but first, it is recommended to trade the stocks with high volume.